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Report
en_GB
The UK dairy alternatives category returned to value growth in 2025, with sales up 3.6% to £692 million. Volumes stagnated in most categories, with value growth fuelled by inflation and…
UK
Vegan and Plant-based
Dairy and Dairy Substitute Drinks
simple
UK Dairy Alternatives Market Report 2025
"Value growth returned in 2025. Inflation will be the main driver of rising sales. Building confidence in how to use dairy alternatives is crucial to unlock growth."
UK Dairy Alternatives Industry – Trends and Insights
The UK dairy alternatives market returned to value growth in 2025. Volumes stagnated in most categories, with value growth fuelled by inflation and the success of selected pricier brands and categories, such as yogurt. This speaks to added value opportunities in the category despite the pressures on household budgets.
Dairy alternatives usage has risen to 40% in 2025, up from 31% in 2023. Under-45s and parents are key user groups. The image of these products as highly processed and uncertainty about how to use them pose threats to the category. Cutting across these with communication and NPD can set brands apart in the competitive category.
Occasion-specific formats and flavoured variants tailored to specific uses hold potential in combating confusion about usage, and hence for winning over new users and unlocking new occasions. Such specific targeting also allows brands to focus on excelling on a smaller number of product attributes. The success of plant-based barista milks offers a case in point.
This Report Looks at the Following Areas:
Performance of the dairy alternatives market amid the income squeeze and up to 2030
The competitive landscape, including 2024/25 star performers
Key trends in launch activity and future product development opportunities
Usage of different types of dairy and dairy alternatives products
Factors most important to buyers when purchasing dairy alternatives, including opportunities in positive nutrition
The barriers posed by uncertainties on how to use dairy alternatives in recipes, and how flavour innovation and tailoring products to specific uses can mitigate this
Protein holds further potential in dairy alternatives
Address uncertainty about dairy alternatives choice
Target specific usage occasions
THE MARKET
Snapshot – market size and forecast
Weak consumer confidence keeps food spend under scrutiny
Graph 1: financial confidence and wellbeing indices, 2016-25
Sustainability remains pertinent
Prevalence of healthy lifestyles brings opportunities and challenges for dairy alternatives
Population growth will support demand for dairy alternatives
Graph 2: population, by age, 2020, 2025 and 2030
Market size and forecast
20% value growth predicted over 2025-30
Graph 3: retail value forecast for dairy alternatives, 2019-30
Milk and yogurt grow value sales while cheese struggles
Graph 4: retail value sales of dairy alternatives, by segment, 2023-25
Alpro retains top position in dairy alternatives
Graph 5: leading brands’ sales in the dairy alternatives retail market, by value, 2022/23-2024/25
Plenish and Coconut Collab shine in 2024/25
THE CONSUMER
Usage of dairy and dairy alternatives
Two in five eat/drink dairy alternatives
Graph 6: usage of dairy and dairly alternatives, by broad type, 2023-25
Dairy alternative milk holds lead in usage
Under-45s and parents drive dairy alternative usage
Graph 7: usage of any dairy alternatives, by age, 2025
Address uncertainty about how to use dairy alternatives
Widespread confusion about dairy alternatives in recipes
Combat confusion about dairy alternatives in recipes to boost usage
Offer detailed usage guidance on pack
Match flavours to recipes to guide decision making
Place dairy alternatives near ingredients and cuisines they complement in store
Tie-ups and bundles with familiar brands offer a way to drive sales
Leverage positive nutrition in dairy alternatives
Still room for high-protein launches in dairy alternatives
High/added protein claims in dairy alternatives lag behind dairy
A need for dairy alternatives to spotlight protein quality
Dairy alternatives can tap interest in hormonal support
Position dairy alternatives for specific usage occasions
Nearly nine in ten dairy users think they will always consume some dairy
Similarities with dairy are essential for those who use both dairy alternatives and dairy
Room for more dairy alternative launches tailored to specific usage occasions
Tailored flavour and usage cues can open up cooking occasions and usage in recipes
PRODUCT, INNOVATION AND MARKETING
Milks spotlight fortification and functionality
Milk NPD targets coffee and tea occasions
Alpro and POTINA launch ranges aimed at children
Big dairy brands call out recipe improvements in plant-based ranges
Cheese attracts varied NPD
Nush and Coconut Collab spotlight the positives
Brands slashed adspend on dairy alternatives in 2024
Graph 8: total above-the-line, online display and direct mail advertising expenditure on dairy and milk alternatives, 2021-25*
Brands embrace experiential marketing
APPENDIX
Report scope
The market
Forecast methodology
Forecast methodology – fan chart
Retail sales and forecast for dairy alternatives
Market forecast and prediction intervals
Market size of dairy alternatives, by segment
Market share
Dairy alternatives – value brand sales
Dairy alternatives – value manufacturer sales
The consumer
Consumer research questions
Consumer research methodology – EMEA
UK generation groups
Other data source methodologies
Mintel Spark
Nielsen Ad Intel coverage
Abbreviations
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